Saturday, September 25, 2010

Situation analysis


FINAL YEAR PROJECT

SITUATION ANALYSIS


MMI 3033 DESIGN PROJECT 1 (MEDIA INNOVATION)

YEAR 2010

VOON WOOI KHONG 1061104088


Table of Content Page

1.0 PROJECT OVERVIEW 3

1.1 Problem Statement

1.2 Issues

1.3 Objectives

1.4 Aim

2.0 PRODUCT PROFILE 5

2.1.1 Product Classification

2.1.2 Product Range & Pricing

2.1.3 Distribution

2.1.4 Product Life Cycle

2.1.5 Brand Image & Implication

2.1.6 Product Packaging

2.1.7 Strength & Weaknesses

2.1.8 Advantages & Disadvantages

2.1.9 Distinctive Features

2.1.10 Unique Selling Proposition (USP)

2.1.11 Positioning Statement

2.1.12 Promotional History

3.0 ABOUT THE COMPANY 43

3.1 History

3.2 Establishment

3.3 Distribution

3.4 Philosophy

3.5 Mission

3.6 Culture & Values

3.7 Customer Relationship Management

3.8 Market Share

3.9 Current Marketing Objective

4.0 CONSUMER & STAKEHOLDERS 48

4.1 Current Consumer Characteristics

4.2 Stakeholders

5.0 INDUSTRY & MARKETPLACE 52

5.1 Definition of the Industry

5.2 Development of the industry

5.3 Shape of the Industry

5.4 Marketplace Analysis

6.0 COMPETETIVE SITUATION 55

6.1 Direct Competitors

6.2 Indirect Competitors

7.0 SWOT ANALYSIS 59

7.1 Strength

7.2 Weaknesses

7.3 Opportunities

7.4 Threats

8.0 STRATEGIC TARGET MARKET 61

8.1 Demographic Background

8.2 Education Attainment and Income Level

8.3 Demographics

8.4 Psychographics

9.0 STRATEGIC MARKETING PLAN 66

9.1 Current Perception

9.2 Marketing Objective

9.3 Media Applications

10.0 SURVEY ANALYSIS 68

10.1 Survey Question

10.2 Online Survey Results

10.3 Conclusion

10.4 Photo

Chapter 1: Project Overview
SITUATION ANALYSIS

BRAND: HAIER

CATEGORY: COMPUTER AND ELECTRONIC DEVICE

1.0 PROJECT OVERVIEW

1.1 Problem Statement

HAIER is a very strong and trustful company and produce quality product but consumer still not willing purchase their product, just because of “China Man Made”.

1.2 Issues

HAIER is a very strong and trustful company, in the pass HAIER produce a lot of quality proven product, and have done a lot of advertising example like having TV commercial, sponsor for big organization like Beijing Olympic, FIFA 2010, NBA, even 100% support “Save The Earth” campaign, HAIER willing to give out so much is just want to get the consumer to believe and trust their product, don’t prejudge HAIER is a china man company mean their product have no quality. Consumer perception of purchasing electronic home appliance is the biggest issues for HAIER.

1.3 Objective

To find out how trustful is this brand.

To find out how consumer look in to this brand.

To find out reason of consumer have a bad image of this brand.

1.4 Aim

Change the consumer perception by upgrading the brand image.

Chapter 2: Product Profile
2.0 PRODUCT PROFILE

2.1 Product Classification

Brand: HAIER

Industry: Home Appliance

Category: Electronic Kitchen Appliance

2.2 Product Range & Pricing


HR-211S RCP : RM 739.00


HR-250T RCP : RM 999.00


HR-358TG RCP : RM 1,299.00



HR-408TG RCP : RM 1,499.00




HR-538TG RCP : RM 1,999.00


HR-638TG RCP : RM 2,499.00


Features Specifications

  • Coolever Zone
  • Silver Nano Deodorizer
  • Tempered Glass Shelves
  • Cool Booster
  • No Frost with Multi Flow
  • Deluxe Guard
  • Air Shower
  • Movable Twist Icemaker
  • Color: Matt Silver

HWM6815 RCP : RM 599.00

Feature Specifications

  • Capacity : 6.0kg
  • Nano Wash technology, healthier wash
  • Plastic Inner Drum
  • Water Level Selection
  • LED Display
  • Transparent Top Lid Cover

HWM7808 RCP : RM 699.00


Features Specifications

  • Capacity : 7.0kg
  • Fiber Body
  • Stainless Steel Inner Drum
  • 4 water levels selection
  • Hand Wash Function : Gentle Wash Function
  • Adjustable Foot
  • Transparent Top Lid Cover

HWM138VA RCP : RM 749.00

Features Specifications

  • Capacity : 13.0kg
  • Nano Wash Technology
  • Soak Function
  • Long Lasting Motor Design
  • Big Plastic Inner Drum Design
  • Transparent Top Lid Cover

GDZ607VA RCP : RM 799.00

Features Specifications

  • Capacity : 5.0 kg
  • Alloy Drum
  • Long Lasting Motor Design
  • Delicate Drying
  • Auto Door Lock
  • Dynamoelectric timer, safe & convenient
  • Automatic temperature-controller, more safety

HF-100S RCP : RM 759.00

Features Specifications

• Capacity : 100 liter
• Mechanical temperature control
• Adjustable thermostat
• 100% HFC free & FCKW free
• Revertible door – Left or Right swing
• 4 drawers Cooling System
• Dimension (W x D x H) :

545 x 542 x 830mm


BD-120H RCP : RM 759.00

Features Specifications

• Capacity : 103L
• CFC Free
• With lock
Deep and quick freeze function
• High pressure and microbiological foam

filled door for energy conservation
• Temperature Control
• Condenser is built in inside the freezer
• Product Dimension:

570 (W) x 520 (L) x 845 (H)
• Net Weight: 31 kg

BD-320H RCP : RM 1,319.00

Features Specifications

• Capacity : 324 Liter
• CFC Free
• With lock
• Deep and quick freeze function
• High pressure and microbiological foam

filled door for energy conservation
• Over temperature alarm
• Temperature Control
• Condenser is built in inside the freezer
• Product Dimension:

1055 (W) x 650 (L) x 835 (H)
• Net Weight: 55 kg

BD-568 RCP : RM 1,999.00

eatures Specifications F

· Capacity : 560 liter (88kg)

· Dimension (W x D x H) : 1655 x 713 x 897mm

· Condenser is built in inside the freezer

· CFC Free

· With lock

· Curved door with round edge plastic door

end cap shall eliminate

the external handle breaking problem.

· Temperature Control

· Temperature -15ºC to 28ºC

BD-560H RCP : RM 2,029.00

Features Specifications

• Capacity : 524 Liter
• CFC Free
• With lock
Deep and quick freeze function
• High pressure and microbiological

foam filled door for energy conservation
• Over temperature alarm
• Temperature Control
• Condenser is built in inside the freezer
• Product Dimension:

1650 (W) x 650 (L) x 835 (H)
• Net Weight: 70 kg

JC-398GD RCP : RM 4,499.00


Features Specifications

  • Large storage space - ideal for commercial use
  • Temperature display
  • Top shelf with slight slanting angle
  • presentation of wine bottles
  • storage of open bottles
  • Interior light
  • Temperature control (4ºC to 18ºC)
  • Adjustable wooden rack
  • Bottles Storage : 174

JC-160GD RCP : RM 2,499.00

Features Specifications

  • Electronic adjustable temperature control
  • Humidity display for maintaining
  • the ideal wine storage humidity level
  • Interior light
  • Temperature control (4ºC to 18ºC)
  • Efficient air circulation
  • Smaller temperature variance in chiller
  • Elegant aesthetically designed door
  • External humidity and temperature control to avoid unnecessary door opening
  • Adjustable wooden rack
  • Bottles Storage : 51

JC-110GD RCP : RM 1,999.00

Features Specifications

  • Electronic adjustable temperature control
  • Humidity display
  • Maintaining the ideal wine storage humidity level
  • Interior light
  • Temperature control (4ºC to 18ºC)
  • Efficient air circulation
  • Smaller temperature variance in the chiller
  • Elegant aesthetically designed door
  • External humidity and temperature control
  • Avoid unnecessary door opening
  • Adjustable wooden rack
  • Bottles Storage : 36

HA-808CHB RCP : RM 399.00

Features Specifications

• Motif Flower Series
• Convertible Built-in / Free Standing Hob
• Safety Switch
• 8mm (Thickness) Tempered Glass
• Product Dimension:

780 (L) x 450 (W) x 90 (H) mm
• Built- in Dimension:

655 (L) x 355 (W) x 60 (H) mm
• Packing Dimension:

820 (W) x 490 (D) x 180 (H) mm

HA-702CHBRCP : RM 399.00

Features Specifications

• Convertible Built-in / Free Standing Hob
• Safety Switch
• 8mm (Thickness) Tempered Glass
• Product Dimension: 780 (L) x 450 (W) x 90 (H) mm
• Built- in Dimension: 655 (L) x 355 (W) x 60 (H) mm
• Packing Dimension: 820 (W) x 490 (D) x 180 (H) mm

HA-618BHB RCP : RM 299.00

Features Specifications

• Motif Flower Series
• Convertible Built-in / Free Standing Hob
• 8mm (Thickness) Tempered Glass
• Product Dimension:

80 (L) x 450 (W) x 90 (H) mm
• Built- in Dimension:

655 (L) x 355 (W) x 60 (H) mm
• Packing Dimension:

820 (W) x 490 (D) x 180 (H) mm

HA-502BHB RCP : RM 299.00

Features Specifications

• Convertible Built-in / Free Standing Hob
• 8mm (Thickness) Tempered Glass
• Product Dimension: 780 (L) x 450 (W) x 90 (H) mm
• Built- in Dimension: 655 (L) x 355 (W) x 60 (H) mm
• Packing Dimension: 820 (W) x 490 (D) x 180 (H) mm

HCH-890TG RCP : RM 1,399.00

Features Specifications

• Suction Power of Motor: 1000m3/hr
• 3 Speeds Mechanical Switch Control
• LED Lamp
• Charcoal Filter
• Product Dimension (WxDxH):

900 x 510 x 560 mm
(Height Extension As 890 mm)
• Gross Weight: 25kg
• Net Weight: 23kg

HCH-990SS RCP : RM 1,299.00

Features Specifications

• Suction Power of Motor: 1000m3/hr
• 3 Speeds Mechanical Switch Control
• LED Lamp
• Charcoal Filter
• Product Dimension (WxDxH): 900 x 510 x 530 mm
(Height Extension As 890 mm)
• Gross Weight: 27kg
• Net Weight: 25kg

HA-429EV RCP : RM 399.00

Features Specifications

  • 42 liter
  • Rotisserie & Convection Function
  • 4 stages heating selector
  • Timer: 60 minutes with ring bell
  • Temperature control: 100ºC to 250ºC
  • Stainless Steel Housing
  • Product Dimension:
  • 595(W) x 420(D) x 375(H) mm
  • Packing Dimension:
  • 620(W) x 452(D) x 432(H)mm

HA-259EV RCP : RM 219.00

Features Specifications

• 25 Liter
• Stainless Steel Housing & Lid Handle
• Indication Light
• 4 stages heating selector
• Timer: 60 minutes with ring bell

HA-192EV RCP : RM 159.00

Features Specifications

• 19 Liter
• Stainless Steel Housing & Lid Handle
• Indication Light
• 4 stages heating selector
• Timer: 60 minutes with ring bell
• Temperature control: 100°C to 250°C
• Product Dimension:

430(W) x 305(D) x 290(H) mm
• Packing Dimension:

464(W) x 348(D) x 348(H) mm

EA-25UG13 RCP : RM 459.00

Features Specifications

• 25 Liter
• 800W Microwave Power
• 1000W Grill Power
• Silver & Stainless Steel Color
• Painted Cavity & Housing
• 5 Microwave Level
• 1 Grill Power Level
• Child Lock Function
• Cooking End Signal
• Defrost Function
• Product Dimension (W x D x H) :

509 x 303 x 416 mm
• Net/ Gross Weight: 15.1/ 16.8kg

EA-180M RCP : RM 259.00

Features Specifications

• 17L
• 700W
• White Color Painted Cavity & Housing
• 6 Microwave Power Level
• Child Lock Function
• Cooking End Signal
• Defrost Function
• Product Dimension (WxDxH):

424 x 335 x 263 mm
• Net Weight: 10.6kg

HKT-2111 RCP : RM 229.00

Features Specifications

• 3000W, 1.7L Capacity
• High Gloss Lacquer Finish Over

Stainless Steel Housing
• Cool Wall Protection Design
• 360 Degree Cordless with OTTER Control
• Patented Blue Light Illumination Indicator
• Durable Non-slip Design Handle
• Button–Activated 2 Level Spout Cover
• Detachable Filter, Water Level Window,

Cord Storage
• Automatic Shut-off, Dry Boil Protection
• Packing Dimension (WxDxH): 234 x 177 x 232 mm
• Product Dimension (WxDxH): 220 x 220 x 240 mm
• Gross Weight: 1.8kg
• Net Weight: 1.4kg

HKT-2121

Features Specifications:

• 2000-2400W, 1.7L Capacity
• High Gloss Lacquer Finish Over Stainless Steel Housing
• 360 Degree Cordless with OTTER Control
• Durable Non-slip Design Handle
• Indicative Light
• Detachable Filter, Water Level Gauge, Cord Storage
• Automatic Shut-off, Dry Boil Protection
• Packing Dimension (WxDxH):

239 x 210 x 265 mm
• Product Dimension (WxDxH):

220 x 220 x 240 mm
• Gross Weight: 1.61kg
• Net Weight: 1.23kg

HTR-2111 RCP : RM 179.00


Features Specifications:

• High Gloss Lacquer Finishing
• Extra Wide Slots(32mm) for All Type of Bread
• Blue Light Illumination Indicate Browning
• Adjustable Browning Control with Count Down

Feature
• Illumination Indicator on Cancel/Defrost/Reheat

Button Cancel/Eject Button to Stop Toasting Cycle
• Defrost, Normal Heat Function with

Count Down Illumination Blue Light
• Hi-lift Function for Easy Taking Out The Bread
• Auto-centering, Anti Jamming Protection Design
• Integrated Roll Warmer, Cord Storage Compartment
• Removable Crumb Tray for Easy Cleaning
• Packing Dimension (WxDxH): 241 x 174 x 185 mm
• Product Dimension (WxDxH): 300 x 200 x 210 mm
• Gross Weight: 2.03kg
• Net Weight: 1.59kg

HBL-2121 RCP : RM 219.00

Features Specifications:

• High Gloss Lacquer Finish Over

SUS Surface Housing
• Powerful 500 Watts Motor
• Powerful Turbo Design
• Blue Light Illumination Indicate

Different Speed
• 1.5L Glass Jug
• 6 Stainless Steel Blades Design
• 360 Degree Intelligent Safety Switch System
• 6 Speed Selector With Pulse for

Precise Blending Control
• Detachable Stainless Steel Blade for

Easy Cleaning
• A Filler-cup Cover
• Dishwashable Lid, Jug, Blades
• Packing Dimension (WxDxH):

190 x 210 x 380 mm
• Product Dimension (WxDxH):

238 x 208 x 345 mm
• Gross Weight: 3.5kg
• Net Weight: 3.2kg

HCJ-2111 RCP : RM 199.00


Features Specifications:

• High Gloss Lacquer Finish Over SUS Surface Housing
• Powerful 85 Watts Motor
• Tilting Angle Design for Easy Juice Flowing
• Special Design to Match The Glass
• Juice Automatically Flows Out of The Juicer Spout
• Adjustable Spout Level to Stop Juice Flowing

Into The Glass
• Stainless Steel Filter
• Two Cones for Different Kinds of Fruit
• Clockwise Turning, Non-slip Feet, Cord Storage with

Thermal Reset on The Motor Overheat Protection
• Dish washable
• Packing Dimension (WxDxH): 150 x 170 x 250 mm
• Product Dimension (WxDxH): 205 x 189 x 290 mm
• Gross Weight: 2.4kg
• Net Weight: 1.6kg

HA-199CK RCP : RM 69.00

Features Specifications:

  • 1.7L Cordless Jug Kettle,
  • 1850 – 2200W
  • Conceal Heating Element
  • Auto Switch Off
  • Water Level Indicator
  • Extra Filter
  • 360 Rotary Base
  • Built In Thermal Fuse
  • Packing Dimension (WxDxH)):

175 x 200 x 225 mm

HA-1238Coming Soon

Features Specifications:

  • 1.7 Liter Cordless Jug Kettle
  • 1850 – 2200W
  • Dry Boiled Sensor
  • Auto Switch Off
  • Illuminated On/ Off Switch
  • Extra Filter
  • OTTER Control
  • Built In Thermal Fuse















2.3 Distribution

HAIER product are distribute to more than 100 country in the whole world wide, however in Malaysia we can easily found at hypermarket GIANT, JUSCO, MAKRO, or any of the electronic home appliance shop who sub division of HAIER.

2.4 Product Life Cycle


2.5 Brand Image & Implication

HAIER is today one of the world’s leading white goods home appliance manufacturers. The products of HAIER Group are now distributed to more than 100 countries. In October 2009, Fortune Magazine published 2009 “China’s Most Admired Companies”, HAIER ranks the first.

2.6 Product Packaging




2.7 Strength & Weaknesses

Strength

  • Product innovation.
  • Speed to market of new product
  • Passion of its people.
  • Niche market strategy
  • Strength in low-end appliances such as refrigerators for college dorm room.
  • Decentralized sales and marketing allow flexibility in term of local market adaption.
  • Ability to move the manufacturing plants away from China, to avoid the “Made in China” issues.

Weaknesses

  • Country-of-origin issue. Even though products are manufacturered elsewhere and are selling relatively well in the United States, to a certain extent the country-of-origin issue may still affect the public's perception of their products.
  • Consistency of product quality across all markets is still a bit suspect.
  • To be really successful in the United States and other Western countries, Haier will have to take on the giant brands in mass-as opposed to niche-product categories, and some observers doubt its ability to do this globally.
  • Possible loss of focus in the US market as the brand tries to defend its home market position, where the top world brands are now beginning to take away market share.
  • Most design work is still done in china.

2.8 Advantages & Disadvantages

Advantages

· Experienced in manufacturing home appliance

· Easily accessible for consumers

· Provide affordable price

Disadvantages

· Is a china brand product, many people prefer not to chose a china made product.

· One of the reason is the price to economic, consumers tend to doubt the quality

· Too many competitors in this industry.

2.9 Distinctive Features

HAIER has create a legendary history from none body into somebody today, with the courage and braveness gone through the entire problem they have faced. Now are the world top 4 home appliance companies and No. 1 in china. Their reputation and their passion to the customer is the reason where they are today.

2.10 Unique Selling Proposition (USP)

Other brands all offer 1 year warranty, but HAIER offers 2 years warranty on its entire product. This proves that HAIER have absolute faith to their product. HAIER is one and the only one giving this promise or trust to their customer

2.11 Positioning Statement

HAIER is an electronic home appliance which provides 2 years warranty and with a very affordable price which suite to middle class people who hoping to have a better lifestyle.

2.12 Promotional History

Print ads:


TV commercial:



Website:

Road shows:



Chapter 3: About the Company
3.0 ABOUT THE COMPANY

3.1 History

Haier is the world’s 4th largest whitegoods manufacturer and one of China’s Top 100 IT Companies. Haier has 240 subsidiary companies and 30 design centers, plants and trade companies and more than 50,000 employees throughout the world. Haier specializes in technology research, manufacture industry, trading and financial services. Haier 2006 global revenue was RMB107.5 billion.

Guided by the business philosophy of CEO Zhang Ruimin, Haier has experienced the development stages, noted as Brand Building, Diversification and Globalization. At the 21st anniversary of the founding of Haier Group on December 26, 2005, Haier announced its 4th strategic development stage of global brand building. In 1993, Haier brand was officially recognized as a famous brand. In 2006, Haier brand was valued at RMB74.9 billion.

Since 2002, Haier has consecutively been ranked first in the row of China’s most valuable brands for manufacture of 18 products, including refrigerators, air conditioners, washing machines, televisions, water heaters, personal computers, mobile phones and kitchen appliances. Haier was ranked first of China’s Top 10 Global Brands by China State Bureau of Quality and Technical Supervision (CSBTS) for refrigerators and washing machines. On August 30, 2005, Haier was ranked 1st of China’s Top 10 Global Brands by the Financial Times.

3.2 Establishment

Haier’s global branding strategy aims at positioning the company as a local brand in different world markets in conjunction with enhanced product competitiveness and strong corporate operations. Haier’s international business framework encompasses a global network of design, procurement, production, distribution and after-sale services. Today, Haier has established 15 industrial complexes, 30 overseas production factories and bases, 8 design centers and over 58,000 sales agents worldwide.

3.3 Distribution

HAIER has established an extensive sales network around the globe. Key partners in perspective markets include:

  • China: Strategic alliance with Suning and Gome chain stores
  • America: Cooperation with TOP 10 retailers, e.g. SEARS, Lowe's, HOME DEPOT, Best Buy, PC-Richard, Wal-Mart, Sam's, Costco, BrandsMart and Target
  • Japan: Cooperation with TOP 10 retailers, e.g. YAMADA, KOJIMA and JUSCO
  • Europe: Cooperation with KESA, Media Market and Carrefour

All around the world, especially in Supermarket, Hypermarket and Electronic Shop.

3.4 Philosophy

Behind Haier's success is this simple and ambitious philosophy, taking on concrete form in the attention to research and design, carried out with maximum respect for consumers and the environment.

The Group's philosophy is also reflected in the reliability of the Customer Service during the before and after-sales phases and in the resources used to create electrical and electronic appliances intended to simplify the everyday life of families.

3.5 Mission

To improve the quality of life, focusing on customers' needs. Innovation, technology, timeliness, insight, organization, distribution capacity, solidity and high quality services, are the factors that have enabled Haier to achieve important goals, often anticipating new consumer trends and styles.

Haier has developed a corporate image campaign in Asian , aimed at creating strong brand awareness, flanked by a policy clearly aimed at offering high quality and high performance product ranges. The solutions proposed, combining styling and practicality, are designed to meet the needs of Asian consumers and markets.

3.6 Culture & Values

Haier corporate culture has been widely recognized by Haier’s employees as innovative value created by Haier senior management.

Innovation is the core of Haier corporate culture, Haier’s unique cultural system cultivated and developed over the past 20 years. Haier corporate culture is guided and developed by advanced concept, innovative strategy, efficient organization, creative technology and market orientation, which have enabled Haier to grow swiftly with business expansion from China to outside world. Haier corporate culture features recognition and participation of all employees. Today, Haier is ambitious to gain worldwide recognition. To achieve this magnificent goal, Haier has had all its employees involved in realizing Haier’s ideal to be a global recognizable brand.

3.7 Customer Relationship Management

HAIER promoters are allocated at most supermarkets and hypermarkets to assist customers, to explain about their products and help customers make a choice on a product that suits them.

At their website there is also a section where people can give feedback or comments. Services start from Monday-Friday (9am-6pm).


3.9 Market Share

According to the latest data released by Euromonitor, with a market share up to 5.1 percent, Haier ranks first among the brands of white goods all over the world in term of market share and it was the first time for a Chinese company to be the number one brand in white goods industry. At the same time, the market share of Haier refrigerator and washing machine is 10.4 percent and 8.4 percent respectively, both ranking first in the industry. Moreover, Haier leads the world in intelligent home appliances integration, network household appliances, digitization, large scale integrated circuit and new materials."Innovation driven" Haier has been committed to providing effective solutions to global consumers and achieving a win-win outcome with them.

3.10 Current Marketing Objective

In current depressed market, fast speed is gained by innovative thinking and spirit.

The obtained market shares cannot be continued if no innovation is pursued. During the innovation process, innovation should be combined with speed.

The decentralized organizing structure is aimed to get the enterprise involved in the market practice. The entire process of management and production are concentrated upon satisfying the needs of both market and innovation.


Chapter 4: Consumer & Stakeholder
4.0 CONSUMER & STAKEHOLDERS

4.1 Current Consumer Characteristics

Demographics

Age: 18-40 years old

Gender: Male & Female

Education: SPM, Diploma –There description or Manu book to read.

Occupation: Employee, Business owner

Income range: RM1500-RM4000

Race & Ethnicity: All

Geographic location: sub-urban

Psychographics

Perception: They look for affordable products that suit their needs.

Learning: Simple consumers who have smaller criteria of choosing products.

Motivation and needs: They require simple basic appliance that can serve their needs. They don’t need complicated or high technology appliance of services.

Attitude: Simple, Contented, Easily Satisfied

Personality: Not particular

Lifestyle: Love to cook, focus on quality of life

4.2 Stakeholders

Chairman and CEO: Mr. Zhang Ruimin

President: Ms. Yang Mianmian

Vice Chairman: Mr. Wu Kesong

Board of Directors

Executive Directors

Ms. YANG Mian Mian (Chairman)

Mr. ZHOU Yun Jie

Mr. LI Hua Gang

Mr. SUN Jing Yan

Non-executive Directors

Mr. WU Ke Song (Deputy Chairman)

Mr. LIANG Hai Shan

Independent Non-executive Directors

Mr. WU Yinong

Mr. YU Hon To, David

Dr. LIU Xiao Feng

Principal Board Committees

Audit Committee

Mr. YU Hon To, David (Committee Chairman)

Mr. WU Yinong

Dr. LIU Xiao Feng

Remuneration Committee

Mr. WU Yinong (Committee Chairman)

Dr. LIU Xiao Feng

Mr. YU Hon To, David

Mr. WU Ke Song

Mr. ZHOU Yun Jie

Nomination Committee

Mr. YU Hon To, David (Committee Chairman)

Mr. WU Yinong

Dr. LIU Xiao Feng

Mr. ZHOU Yun Jie

Company Secretary

Mr. NG Chi Yin

Legal Advisors

As to Hong Kong Law

DLA Piper Hong Kong

As to Bermuda Law

Conyers Dill & Pearman

Principal Banker in Hong Kong

Industrial and Commercial Bank of China (Asia) Limited

Principal Banker in the PRC

China Construction Bank Corporation

Auditors

Ernst & Young


Chapter 5: Industry & Marketplace
5.0 INDUSTRY & MARKETPLACE

5.1 Definition of the Industry

A major appliance, or domestic appliance, is usually defined as a large machine which accomplishes some routine housekeeping task, which includes purposes such as cooking, food preservation, or cleaning, whether in a household, institutional, commercial or industrial setting. An appliance is differentiated from a plumbing fixture because it uses an energy input for its operation other than water, generally using electricity or natural gas/propane. An object run by a watermill would also be considered an appliance.

5.2 Development of the Industry

The Group will continue to leverage on the favorable national policies of “Rural Area Subsidized Electrical Appliances Purchase Policy” and “Home Appliances Replacement Policy” to explore the inherent potential of 3rd and 4th tier markets, expand the networks of marketing, logistics

and service, and further strengthen the penetration to these markets by expanding into counties, towns, villages. In addition, amidst the highly competitive business environment, the Group will consistently make improvement and continue to create immense value for customers by providing quality, cost-efficient and thoughtful products with its innovative research and development, tailored designs and effective operational strategies.

5.3 Shape of the Industry

The white goods market sector experienced strong growth between 2006 and 2007, with an increase of 11.5% over the year. In terms of volume, the market grew 9.4%, from 2006 to 2007. However, in the subsequent two years, growth was much slower.

Overseas-based manufacturers of white goods, with UK operations, have been benefiting from the highest growth rate in the industry since the late 1980s.

In terms of value, home laundry appliances remain the largest sub-sector, as it has been over the last few years. Cooking appliances was the second largest of the sub-sectors analyzed within this report. Of course, the fastest moving product line within this sub-sector remains the microwave oven.

In terms of volume, the largest white goods product line was that of washing machines. The next largest sector by volume was microwave ovens. Fridge-freezers, as with value, came third.

5.4 Marketplace Analysis

THE consumer durables sector is set to close the current financial year with 12% growth, 0.5 percentages point more than the growth registered last fiscal, according to a Ficci survey. The survey is based on feedback from the consumer durables industry, allied industry organizations and government agencies. Technological improvements, falling prices due to competition, aggressive and innovative marketing and declining import tariffs have contributed to the strong growth. The survey has projected that the market for non-IT consumer durable goods, estimated at Rs 35,000 core in 2006-07, is expected to achieve 12% growth in the current year. According to the survey, many high-end products such as LCD TV, MP3, DVD, split air-conditioner, high end washing machine do not find place in the list of items covered by the Central Statistical Organization (CSO) for calculating official data. These items, however, have seen impressive growth. The sectors which are projected to achieve ‘excellent’ growth rates of more than 20% in terms of units manufactured are air-conditioner (25%), split air-conditioner (60%), frost-free refrigerator (54%), washing machines (20 %), fully-automatic washing machine (35 %), microwave oven (35 %), high-end flat panel TV (100 %) and DVD (25 %). The sectors which are expected to record high growth rates between 10% and 20 % are refrigerator (11 %) and color TV (15 %).


Chapter 6: Competitive Situation
6.0 COMPETITIVE SITUATION

Marketing competitive is handled in a number of ways.

There is continued use of corporate marketing, where branding is built up, especially from players such as Zanussi. However, much white goods marketing is conducted in below-the-line activities and trade promotions. It should be noted that advertising spend has been much reduced over the last year for most product categories.

Overall, the content of the marketing varies substantially, from corporate messages to emphasis on new processes, such as energy-saving devices, through to campaigns which develop money-off/discounting type themes.

Future marketing spend by the manufacturers is likely to focus on key specific product lines, namely those `smart' appliances which fulfil dreams of a future kitchen.

Of course, spend will continue to remain on standard product lines as well, but, given the lack of spend in recent times, the thrust of big budgets will go to the new products.

Of course, there are two levels to the marketing, that driven by the manufacturers and that developed by the channel to market suppliers.

Channel To Market
The channel to market has also consolidated, in much the same way as the manufacturer end of the sector. A small number of large electrical multiple retailers dominate the sales channel. Despite supposed new competition, as a result of the de-regulation of the gas and electricity industries, the reality is that their high street locations have closed, leaving the UK public with little choice but to visit a retail park supplier.

Only the small specialist aspects remain the province of non-electrical multiple retailers, such as built-in appliances, which may, for example, be sold through a fitted kitchen supplier.

In terms of marketing, the suppliers of white goods use a range of marketing mechanisms, from television advertising, for corporate messages, to literature and leaflet drops for localised promotions, to the Internet to encouraging direct sales.

Reference:

http://www.researchandmarkets.com/reports/3953

http://en.wikipedia.org/wiki/Major_appliance

http://www.sme.in/CurrentNews.aspx?NewsID=1878

http://www.naukrihub.com/india/fmcg/overview/white-goods/

6.1 Direct Competitors:

· Panasonic

· Toshiba

· LG

6.2 Indirect Competitors:

Home appliance, kitchen appliance electric product have no indirect competitor, the reason is this product don’t really have a product to replace for it, example a refrigerator if there are not selling in the market we most possible will buy a brush and a pail to wash cloths.

Direct Competitors:


Best known by its Panasonic brand name, Group & Global Headquarters, Panasonic Corporation. based in Osaka, Japan is a worldwide leader in the development and manufacture of electronic products for a wide range of consumer, business, and industrial needs.

Panasonic Malaysia Sdn Bhd is a sales, service and marketing company for the Panasonic brand of electrical and electronic consumer products ranging from home appliances, audio-visual, digital cameras, air conditioners, business systems & solutions, telecommunications, professional broadcasting cameras, health and beauty care to batteries and lightings.


Toshiba Sales & Services Sdn Bhd (TSS) was founded in Malaysia on 19th April 1977. Over thirty years, TSS has built up its formidable reputation as distributor of high quality Audio Visual (AV) and Home Appliances (HA) products. Our AV products includes LCD TVs, Plasma TVs, color CRT TVs, DVD Players and High Definition (HD)-DVD players while the HA products includes Refrigerators, Washing Machines, Rice Cookers and Electric Pots.

As the distributors of one of the world's leading electronic and electrical company, we are committed to serve our fellow Malaysians. We strive not only to provide our customers with the leading technologically innovative products such as Meta Brain Pro Technology, but also through excellence in customer service. TSS will continue to provide Malaysians with cutting edge technology products that provides excellence functionality, reliability, durability and environmentally friendly features as outlined in our basic commitment, - "Committed to People, Committed to the Future".

TSS foresees that the company will continue to make a strong presence in Malaysia market through the improvement of existing products and new technological breakthroughs in the AV and HA sectors. We are confident that TOSHIBA will maintain its edge as one of the leading brands in Malaysia. In year 2006, TOSHIBA was awarded Gold Award by Reader's Digest Malaysia for being the Trusted Brand in 2 categories ~ LCD TVs and Washing Machines.


LG Electronics' innovative technologies, unique products, and cutting-edge designs are an investment in the future.

LG Electronics, Inc.(LG) is a global leader and technology innovator in consumer electronics, mobile communications and home appliances, employing more than 84,000 people working in 112 operations including 81 subsidiaries around the world. With 2008 global sales of $44.7 billion, LG comprises of five business units - Home Entertainment, Mobile Communications, Home Appliance, Air Conditioning and Business Solutions. LG is one of the world's leading producers of flat panel TVs, audio and video products, mobile handsets, air conditioners and washing machines.

LG's efforts continue to enhance the global presence of the LG brand and to maximize profitable growth. In particular, LG Electronics will focus on achieving profitable and sustainable growth in the mobile communications and home entertainment sectors to strengthen its leadership in the IT industry, while at the same time increasing its market share in the home appliance, air-conditi


Chapter 7: SWOT Analysis
7.0 SWOT ANALYSIS

7.1 Strength

  • Much cheaper and affordable price for consumer.
  • The longest warranty for the product in the white goods industry.
  • Haier electronic is top 4 in the worldwide and top 1 in China.
  • Leading of innovation in the industry.

7.2 Weaknesses

  • Not much choice in the market.
  • Most product design work still been done in China
  • Customer service does not on call in 24hour and 7day per week.
  • Consistency of product quality across all market is still a bit suspect.

7.3 Opportunities

  • Mega sale in the country 3 time a year help to increase the sale.
  • Sponsorship event example OLYMPIC, FIFA so more people will trust HAIER.
  • When there is an economy down turn, people will choice cheaper product.
  • Save the earth campaign are active every place, HAIER have ECO FRIENDLY product.

7.4 Threats

  • Rumored about HAIER being a low quality product as a china brand.
  • Perception of the consumer, JAPAN or KOREA white goods product are the best.
  • Competitor in the market over shadow HAIER.
  • Electricity bill increase.


Chapter 8: Strategic Target Market
8.0 STRATEGIC TARGET MARKET

8.1 Demographic Background

The demographics of Malaysia are represented by the multiple ethnic groups that exist in this country. Malaysia's population, as of September 2008[update], is estimated to be 27,730,000, which makes it the 43rd most populated country in the world. Of these, 5.44 million Malaysians live in East Malaysia and 21.2 million live in Peninsular Malaysia. Malaysian population continues to grow at a rate of 2.4% per annum; about 34% of the population is under the age of 15. Malays and other Bumiputera groups make up 65% of the population, Chinese 26%, Indians 8% and other unlisted ethnic groups 1%.

Population distribution is uneven, with some 20 million residents concentrated in the lowlands of Peninsular Malaysia, which has an area of 131,598 square kilometers and is slightly smaller than the State of Louisiana in the United States.

Number of employed persons by age

Total

15-19

370.2

20-24

1,451.1

25-29

1,841.8

30-34

1,604.1

35-39

1,445.7

40-44

1,353.0

45-49

1,137.9

50-54

913.8

55-59

521.7

60-64

258.0

Total

10,897.3



Stratum

Total

Urban

7,411.4

Rural

3,485.9



Working age population

17,980.9

Labor force

11,315.3

Outside labor force

6,665.6

8.2 Education Attainment and Income Level

In general, the population is becoming more educated over time, with growth in those with secondary and higher education far outpacing those with primary and no education (Figure 1).

Figure 1: Average Educational Attainment in Malaysia, 2009

Highest certificate obtained

Total

UPSR/UPSRA or equivalent

1,366.4

PMR/SRP/LCE/SRA or equivalent

1,509.2

SPM or equivalent

3,970.6

STPM or equivalent

354.8

Certificate

234.4

Diploma

908.8

Degree

1,003.8

No certificate

1,123.5

Not applicable

426.0

Total

10,897.3



Educational attainment

Total

No formal education

426.0

Primary

1,922.2

Secondary

6,001.2

Tertiary

2,548.0

Total

10,897.3

Competition for jobs is stiff, as there are more graduates in the market. Increasingly educated population should lead to the bigger pool of skilled workers able to drive economic growth, which will improve general living standard and increase in disposable income/ purchasing power.

8.3 Demographics

Age: 25-35

Gender: Male & Female

Education: SPM, Diploma to tertiary education

Occupation: Employee, Business class, Retiree

Income range: RM2000 – RM4000

Race & Ethnicity: All

Geographic location: Urban and sub-urban

8.4 Psychographics

Perception: Looking for value for money products that meet their needs in personal care.

Learning: Magazines, Mass media

Motivation and needs: To have an easier life with an affordable price

Attitude: objective- an unbiased view-able to leave personal judgments aside, matter- of-fact--accepting of conditions; not fanciful or emotional, judgmental- authoritative and often having critical opinions

Personality: Modern-have the intent to have an easier life, capable-have the basic economy to buy things, knowledgeable- smart enough to made decision

Lifestyle: Adventure-

Look at the opportunities to explore and challenge yourself and your family.

See new things, taste new foods, hear new languages or accents. Willing to try new things


Chapter 9: Strategic Marketing Plan
9.0 STRATEGIC MARKETING PLAN

9.1 Current Perception

Base on the study and research, current perception of consumer Malaysia purchasing electronic home appliance will base on three major considerations, first is product quality, second is service quality, third is price perception. Product quality is the most been consider the reason electric home appliance is a durable product, service quality been consider is because a product which use for a long period usually it need for repair or maintenance. For Malaysian consumer usually will base on the product price to judge a product good or bad and product price also the biggest reason influence the consumer making the final decision.

9.2 Marketing Objectives

  • Change the perception of the consumer toward HAIER.
  • Change the brand image to the trustable brand.
  • To able to compare with other competitor brand.
  • To able to increase the sale rate for HAIER.

9.3 Media Applications

Environmental Designs

  • Create promotional booth do demo and testing for give the customer more close and understand the HAIER product.

TVC

  • A TV commercial to reintroduce and promote HAIER to the public as it is one of the best ways to reach the consumer.

Packaging

  • Recreate a more attractive look to the packaging and improve the design that will attract consumers to buy.


Chapter 10: Survey Analysis
10.0 SURVEY ANALYSIS

10.1 Survey Question:

Haier Electronics Kitchen Appliance Survey Form

HAIER is a well-known electronic home appliance from China, we hope to get some opinion from Malaysia consumer in this survey form.Please tick your answer.



* Required

Top of Form

1. Gender? *

Male

Female

2. How old are you? *

age 18-22

age 23-27

age 28-32

age 33 and above

3. Income per month? *

RM500-RM1000

RM1000-RM2000

RM2000-RM3000

RM3000 and above

Nil.

4. Do you own a HAIER product *

YES

NO

5. If you are going to buy electronic home appliance for your house ,will you choose HAIER product? *

Yes

No

Maybe

6. How do you rate Haier product? *



1

2

3

4

5


1to5=bad to good



7. Which is the biggest consideration when you buy electronic home appliance? *

Price

Quality

Brand

Other:

8. Which brand will you choose when you need to buy electronic home appliance? *

HAIER

TOSHIBA

PANASONIC

LG

Other:

9. Is that "China man made" product is an issue which stoping you to buy HAIER product? *

YES

NO

MAYBE

10. Will you give a try to HAIER product? *

YES

NO

MAYBE


Bottom of Form

10.2 Online Survey Result:

80 responses

Summary See complete responses

1. Gender?


Male


44

55%

Female


35

44%

People may select more than one checkbox, so percentages may add up to more than 100%.

2. How old are you?


age 18-22


37

46%

age 23-27


15

19%

age 28-32


14

18%

age 33 and above


14

18%

People may select more than one checkbox, so percentages may add up to more than 100%.

3. Income per month?


RM500-RM1000


18

23%

RM1000-RM2000


8

10%

RM2000-RM3000


22

28%

RM3000 and above


14

18%

Nil.


18

23%

People may select more than one checkbox, so percentages may add up to more than 100%.

4. Do you own a HAIER product


YES


30

38%

NO


50

63%

People may select more than one checkbox, so percentages may add up to more than 100%.

5. If you are going to buy electronic home appliance for your house ,will you choose HAIER product?


Yes


22

28%

No


17

21%

Maybe


41

51%

People may select more than one checkbox, so percentages may add up to more than 100%.

6. How do you rate Haier product? - 1to5=bad to good


1


16

20%

2


7

9%

3


37

46%

4


10

13%

5


6

8%

People may select more than one checkbox, so percentages may add up to more than 100%.

7. Which is the biggest consideration when you buy electronic home appliance?


Price


21

26%

Quality


49

61%

Brand


6

8%

Other


4

5%

People may select more than one checkbox, so percentages may add up to more than 100%.

8. Which brand will you choose when you need to buy electronic home appliance?


HAIER


20

25%

TOSHIBA


23

29%

PANASONIC


56

70%

LG


14

18%

Other


5

6%

People may select more than one checkbox, so percentages may add up to more than 100%.

9. Is that "China man made" product is an issue which stoping you to buy HAIER product?


YES


28

35%

NO


30

38%

MAYBE


21

26%

People may select more than one checkbox, so percentages may add up to more than 100%.

10. Will you give a try to HAIER product?


YES


46

57%

NO


5

6%

MAYBE


29


10.3 Conclusion

Most of the user feels that Haier product only at middle quality and wish it has some improvement to be done. They will give it a try for Haier product if the quality problem has been solved.


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